Hardwood and Decorative Plywood From the People's Republic of China: Initiation of Antidumping Duty Investigation, 65172-65176 [2012-26221]
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Federal Register / Vol. 77, No. 207 / Thursday, October 25, 2012 / Notices
Cash Deposit Requirements
Notification to Importers
Effective upon publication of the final
rescission or the final results of these
NSRs, we will instruct CBP to
discontinue the option of posting a bond
or security in lieu of a cash deposit for
entries of subject merchandise by Fuyi
and Maycarrier. If we proceed to a final
rescission of either of these NSRs, the
cash deposit rate will continue to be the
per-unit PRC wide rate for Fuyi and
Maycarrier. If we issue final results of
the NSR for any of these respondents,
we will instruct CBP to collect cash
deposits, effective upon the publication
of the final results, at the rates
established therein.
This notice serves as a preliminary
reminder to the importers of their
responsibility under 19 CFR
351.402(f)(2) to file a certificate
regarding the reimbursement of
antidumping duties prior to liquidation
of the relevant entries during this
review period. Failure to comply with
this requirement could result in the
Secretary’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of double antidumping duties.
The NSRs and notice are in
accordance with sections 751(a)(2)(B)
and 777(i) of the Act and 19 CFR
351.214(f).
Disclosure
The Department will disclose analysis
performed to parties to the proceeding,
normally not later than ten days after
the day of the public announcement of,
or, if there is no public announcement,
within five days after the date of
publication of, this notice. See 19 CFR
351.224(b).
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Comments
Interested parties are invited to
comment on these preliminary results
and submit written arguments or case
briefs within 30 days after the date of
publication of this notice, unless
otherwise notified by the Department.
See 19 CFR 351.309(c)(ii). Rebuttal
briefs, limited to issues raised in the
case briefs, will be due five days later.
See 19 CFR 351.309(d). Parties who
submit case or rebuttal briefs are
requested to submit with each
argument: (1) A statement of the issue;
and (2) a brief summary of the
argument. Parties are requested to
provide a summary of the arguments not
to exceed five pages and a table of
statutes, regulations, and cases cited.
Any interested party who wish to
request a hearing, or to participate if one
is requested, must submit a written
request to the Assistant Secretary for
Import Administration within 30 days
after the day of publication of this
notice. A request should contain: (1)
The party’s name, address, and
telephone number; (2) the number of
participants; and (3) a list of issues to be
discussed. See 19 CFR 351.310(c). Issues
raised in the hearing will be limited to
those raised in case briefs. The
Department will issue the final
rescissions or final results of NSRs,
including the results of our analysis of
issues raised in any briefs, within 90
days after the date on which the
preliminary rescissions were issued,
unless the deadline for the final results
is extended. See 19 CFR 351.214(i).
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Dated: October 18, 2012.
Paul Piquado,
Assistant Secretary for Import
Administration.
[FR Doc. 2012–26310 Filed 10–24–12; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–986]
Hardwood and Decorative Plywood
From the People’s Republic of China:
Initiation of Antidumping Duty
Investigation
Import Administration,
International Trade Administration,
Department of Commerce.
DATES: Effective Date: October 25, 2012.
FOR FURTHER INFORMATION CONTACT:
Catherine Bertrand or Katie Marksberry
at (202) 482–3207 or (202) 482–7906,
respectively, AD/CVD Operations,
Office 9, Import Administration,
International Trade Administration,
U.S. Department of Commerce, 14th
Street and Constitution Avenue NW.,
Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
AGENCY:
The Petition
On September 27, 2012, the
Department of Commerce
(‘‘Department’’) received an
antidumping duty (‘‘AD’’) petition
(‘‘Petition’’) concerning imports of
hardwood and decorative plywood from
the People’s Republic of China (‘‘PRC’’)
filed in proper form on behalf of
Coalition for Fair Trade of Hardwood
Plywood (‘‘Petitioners’’).1 On October 2,
2012, the Department issued a request
1 See ‘‘Petitions for the Imposition of
Antidumping Duties And Countervailing Duties:
Hardwood Plywood From The People’s Republic of
China,’’ filed on September 27, 2012 (‘‘Petition’’).
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for additional information and
clarification of certain areas of the
Petition. On October 5 and October 9,
2012, Petitioners filed a response with
respect to general questions about
information in the Petition as well as
questions specific to the AD Petition
(‘‘Supplement to the Petition’’). On
October 15, 2012, Petitioners also filed
a revision to the proposed scope
language and additional supporting
documentation.
In accordance with section 732(b) of
the Tariff Act of 1930, as amended (the
‘‘Act’’), Petitioners allege that imports of
hardwood and decorative plywood from
the PRC are being, or are likely to be,
sold in the United States at less than fair
value, within the meaning of section
731 of the Act, and that such imports
are materially injuring, or threatening
material injury to, an industry in the
United States. Also, consistent with
section 732(b)(1) of the Act, the Petition
is accompanied by information
reasonably available to Petitioners
supporting their allegations.
The Department finds that the
Petition was filed on behalf of the
domestic industry because Petitioners
are an interested party as defined in
sections 771(9)(C), (E), and (F) of the
Act. The Department also finds that
Petitioners have demonstrated sufficient
industry support with respect to the
antidumping duty investigation that
Petitioners are requesting that the
Department initiate (see ‘‘Determination
of Industry Support for the Petition’’
section below).
Period of Investigation
The period of investigation (‘‘POI’’) is
January 1, 2012, through June 30, 2012.2
Scope of the Investigation
The product covered by this
investigation is hardwood and
decorative plywood from the PRC. For
a full description of the scope of the
Investigation, please see the ‘‘Scope of
the Investigation,’’ in Appendix I of this
notice.
Comments on Scope of the Investigation
During our review of the Petition, we
discussed the scope with Petitioners to
ensure that it is an accurate reflection of
the products for which the domestic
industry is seeking relief. Moreover, as
discussed in the preamble to the
Department’s regulations 3, we are
setting aside a period for interested
parties to raise issues regarding product
coverage. The period of scope
2 See
19 CFR 351.204(b)(1).
Antidumping Duties; Countervailing Duties;
Final Rule, 62 FR 27296, 27323 (May 19, 1997).
3 See
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consultations is intended to provide the
Department with ample opportunity to
consider all comments and to consult
with parties prior to the issuance of the
preliminary determinations. The
Department encourages all interested
parties to submit such comments by
November 6, 2012, twenty calendar days
from the signature date of this notice.
All comments must be filed on the
records of both the PRC antidumping
and countervailing duty investigations.
Comments should be filed electronically
using Import Administration’s
Antidumping and Countervailing Duty
Centralized Electronic Service System
(‘‘IA ACCESS’’). An electronically filed
document must be received successfully
in its entirety by the Department’s
electronic records system, IA ACCESS.
Documents excepted from the electronic
submission requirements must be filed
manually (i.e., in paper form) with the
APO/Dockets Unit in Room 1870 and
stamped with the date and time of
receipt by the deadline noted above.
Comments on Product Characteristics
for Antidumping Questionnaires
We are requesting comments from
interested parties regarding the
appropriate physical characteristics of
hardwood and decorative plywood to be
reported in response to the
Department’s antidumping
questionnaires. This information will be
used to identify the key physical
characteristics of the merchandise under
consideration in order to more
accurately report the relevant factors
and costs of production, as well as to
develop appropriate product
comparison criteria.
Interested parties may provide any
information or comments that they feel
are relevant to the development of an
accurate listing of physical
characteristics. Specifically, they may
provide comments as to which
characteristics are appropriate to use as
(1) general product characteristics and
(2) the product comparison criteria. We
note that it is not always appropriate to
use all product characteristics as
product comparison criteria. We base
product comparison criteria on
meaningful commercial differences
among products. In other words, while
there may be some physical product
characteristics utilized by
manufacturers to describe hardwood
and decorative plywood, it may be that
only a select few product characteristics
take into account commercially
meaningful physical characteristics. In
addition, interested parties may
comment on the order in which the
physical characteristics should be used
in product matching. Generally, the
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Department attempts to list the most
important physical characteristics first
and the least important characteristics
last.
In order to consider the suggestions of
interested parties in developing and
issuing the antidumping questionnaires,
we must receive comments on product
characteristics by November 16, 2012.
Additionally, rebuttal comments must
be received by November 23, 2012. All
comments and submissions to the
Department must be filed electronically
using IA ACCESS, as referenced above.
Determination of Industry Support for
the Petition
Section 732(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 732(c)(4)(A)
of the Act provides that a petition meets
this requirement if the domestic
producers or workers who support the
petition account for: (i) At least 25
percent of the total production of the
domestic like product; and (ii) more
than 50 percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
petition. Moreover, section 732(c)(4)(D)
of the Act provides that, if the petition
does not establish support of domestic
producers or workers accounting for
more than 50 percent of the total
production of the domestic like product,
the Department shall: (i) Poll the
industry or rely on other information in
order to determine if there is support for
the petition, as required by
subparagraph (A); or (ii) determine
industry support using a statistically
valid sampling method to poll the
industry.
Section 771(4)(A) of the Act defines
the ‘‘industry’’ as the producers as a
whole of a domestic like product. Thus,
to determine whether a petition has the
requisite industry support, the statute
directs the Department to look to
producers and workers who produce the
domestic like product. The U.S.
International Trade Commission
(‘‘ITC’’), which is responsible for
determining whether ‘‘the domestic
industry’’ has been injured, must also
determine what constitutes a domestic
like product in order to define the
industry. While both the Department
and the ITC must apply the same
statutory definition regarding the
domestic like product,4 they do so for
different purposes and pursuant to a
separate and distinct authority. In
addition, the Department’s
determination is subject to limitations of
time and information. Although this
4 See
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section 771(10) of the Act.
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65173
may result in different definitions of the
like product, such differences do not
render the decision of either agency
contrary to law.5
Section 771(10) of the Act defines the
domestic like product as ‘‘a product
which is like, or in the absence of like,
most similar in characteristics and uses
with, the article subject to an
investigation under this title.’’ Thus, the
reference point from which the
domestic like product analysis begins is
‘‘the article subject to an investigation’’
(i.e., the class or kind of merchandise to
be investigated, which normally will be
the scope as defined in the petition).
With regard to the domestic like
product, Petitioners do not offer a
definition of domestic like product
distinct from the scope of the
investigations. Based on our analysis of
the information submitted on the
record, we have determined that
hardwood and decorative plywood
constitutes a single domestic like
product and we have analyzed industry
support in terms of that domestic like
product.6
In determining whether Petitioners
have standing under section
732(c)(4)(A) of the Act, we considered
the industry support data contained in
the Petition with reference to the
domestic like product as defined in the
‘‘Scope of Investigations’’ section above.
To establish industry support,
Petitioners provided their production of
the domestic like product in 2011, and
compared this to the estimated total
production of the domestic like product
for the entire domestic industry.7
Petitioners estimated 2011 production
of the domestic like product by nonpetitioning companies based on their
knowledge of the industry. We have
relied upon data Petitioners provided
for purposes of measuring industry
support.8
On October 9, 2012, we received a
submission on behalf of an importer of
hardwood and decorative plywood, an
interested party to this proceeding as
5 See USEC, Inc. v. United States, 132 F. Supp.
2d 1, 8 (CIT 2001), (citing Algoma Steel Corp., Ltd.
v. United States, 688 F. Supp. 639, 644 (CIT 1988),
aff’d 865 F.2d 240 (Fed. Cir. 1989)).
6 See Antidumping Duty Investigation Initiation
Checklist: Hardwood and Decorative Plywood from
the People’s Republic of China (‘‘AD Initiation
Checklist’’), at Attachment II, Analysis of Industry
Support for the Petitions Covering Hardwood and
Decorative Plywood from the People’s Republic of
China, on file in the Central Records Unit (CRU),
Room 7046 of the main Department of Commerce
building.
7 See Volume I of the Petitions, at 3–5, and
Exhibits I–3A, I–3B, and I–3C; see also Supplement
to the Petition, at 3 and Exhibit I–9; see also Second
Supplement to the AD/CVD Petitions, dated
October 9, 2012, at 2–8.
8 See AD Initiation Checklist at Attachment II.
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defined in section 771(9)(A) of the Act,
questioning the industry support
calculation. On October 11, 2012, we
received a second submission on behalf
of that importer of hardwood and
decorative plywood, supplementing the
importer’s October 9, 2012, challenge to
Petitioners’ industry support
calculation. On October 15, 2012,
Petitioners filed their response to the
importer’s industry support challenge.9
On October 16, 2012, we received a
third submission on behalf of the
importer of hardwood and decorative
plywood. On October 17, 2012,
Petitioners submitted an additional
response to the importer’s industry
support challenge.
Based on information provided in the
Petition, supplemental submissions, and
other information readily available to
the Department, we determine that
Petitioners have met the statutory
criteria for industry support under
section 732(c)(4)(A)(i) of the Act
because the domestic producers (or
workers) who support the Petition
account for at least 25 percent of the
total production of the domestic like
product.10 Based on information
provided in the Petition and other
submissions, the domestic producers (or
workers) have met the statutory criteria
for industry support under section
732(c)(4)(A)(ii) of the Act because the
domestic producers (or workers) who
support the Petition account for more
than 50 percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
Petition. Accordingly, the Department
determines that the Petition was filed on
behalf of the domestic industry within
the meaning of section 732(b)(1) of the
Act.11
The Department finds that Petitioners
filed the Petition on behalf of the
domestic industry because they are
interested parties as defined in sections
771(9)(C), (E), and (F) of the Act and
they have demonstrated sufficient
industry support with respect to the
antidumping duty investigation that
they are requesting the Department
initiate.12
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Allegations and Evidence of Material
Injury and Causation
Petitioners allege that the U.S.
industry producing the domestic like
product is being materially injured, or is
threatened with material injury, by
9 For further discussion of these submissions, see
AD Initiation Checklist at Attachment II.
10 See AD Initiation Checklist at Attachment II.
11 See AD Initiation Checklist at Attachment II.
12 Id.
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reason of the imports of the
merchandise under consideration sold
at less than normal value (‘‘NV’’). In
addition, Petitioners allege that subject
imports exceed the negligibility
threshold provided for under section
771(24)(A) of the Act.
Petitioners contend that the industry’s
injured condition is illustrated by
reduced market share; underselling and
price depression or suppression; lost
sales and revenue; reduced capacity and
capacity utilization; increased
inventories; decline in financial
performance; and employment data.13
We have assessed the allegations and
supporting evidence regarding material
injury, threat of material injury, and
causation, and we have determined that
these allegations are properly supported
by adequate evidence and meet the
statutory requirements for initiation.14
Allegations of Sales at Less Than Fair
Value
The following is a description of the
allegations of sales at less than fair value
upon which the Department based its
decision to initiate this investigation of
imports of hardwood and decorative
plywood from the PRC. The sources of
data for the deductions and adjustments
relating to the U.S. price and the factors
of production (‘‘FOPs’’) are also
discussed in the initiation checklist.15
Export Price
Petitioners calculated export price
(‘‘EP’’) based on two invoices for
hardwood and decorative plywood sold
by Chinese exporters, as identified in
affidavits regarding U.S. price.16 Based
on the invoices and delivery terms,
Petitioners deducted from these prices
the charges and expenses associated
with exporting and delivering the
product to the U.S. customer (e.g.
brokerage and handling and foreign
inland freight).17 Petitioners made no
other adjustments.18
Normal Value
Petitioners state that the Department
has long treated the PRC as a nonmarket economy (‘‘NME’’) country and
13 See Volume I of the Petition, at 14–57 and
Exhibits I–9 through I–27, and Supplement to the
Petition, at 1, 3–4, and Exhibits Supp I–2 through
Supp I–4.
14 See AD Initiation Checklist, at Attachment III.
15 See AD Initiation Checklist at 6–7.
16 See AD Initiation Checklist at 6; see also
Volume II of the Petition, at 1–2 and Exhibits II–
1 through 3.
17 See AD Initiation Checklist at 6–7; see also
Volume II of the Petition, at 2 and Exhibits II–4
through II–11; see also Supplement to the Petition,
at 8.
18 See Volume II of the Petition, at 2 and Exhibit
II–11.
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this designation remains in effect
today.19 In accordance with section
771(18)(C)(i) of the Act, the
presumption of NME status remains in
effect until revoked by the Department.
The presumption of NME status for the
PRC has not been revoked by the
Department and, therefore, remains in
effect for purposes of the initiation of
the PRC investigation. Accordingly, the
NV of the product for the PRC
investigation is appropriately based on
FOPs valued in a surrogate marketeconomy (‘‘ME’’) country in accordance
with section 773(c) of the Act. In the
course of the investigation, all parties
will have the opportunity to provide
relevant information related to the issue
of the PRC’s NME status and the
granting of separate rates to individual
exporters.
Petitioners claim that Thailand is an
appropriate surrogate country under 19
CFR 351.408(a) because it is an ME
country that is at a comparable level of
economic development to the PRC and
surrogate values data from Thailand are
available and reliable. Petitioners also
believe that Thailand is a significant
producer of comparable merchandise.20
Based on the information provided by
Petitioners, we believe that it is
appropriate to use Thailand as a
surrogate country for initiation
purposes. In the course of the
investigation, interested parties will
have the opportunity to submit
comments regarding surrogate country
selection and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an
opportunity to submit publicly available
information to value FOPs within 40
days after the date of publication of the
preliminary determination.
Petitioners calculated the NV and
dumping margins for the U.S. price, as
discussed above, using the Department’s
NME methodology as required by
section 773(c) of the Act, 19 CFR
351.202(b)(7)(i)(C) and 19 CFR 351.408.
Petitioners calculated NV based on the
consumption rates of a producer of
hardwood and decorative plywood
which Petitioners assert is comparable
to major hardwood and decorative
plywood producers in the PRC.21
Petitioners valued by-products and
most FOPs, including packing FOPs,
based on reasonably available, public
surrogate country data, specifically,
Thai import statistics from the Global
Trade Atlas (‘‘GTA’’).22 Petitioners
19 See Volume II of the Petitions, at 3–6 and
Exhibits II–12–14.
20 See Volume II of the Petition, at 3–6.
21 See Volume II of the Petition, at 6 and Exhibits
II–15 and II–16.
22 See Volume II of the Petition, at 7 and Exhibit
II–17; see also Supplement to Petition at 5–8.
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excluded from these import statistics
values from countries previously
determined by the Department to be
NME countries, and from India,
Indonesia, and the Republic of Korea, as
the Department has previously excluded
prices from these countries because they
maintain broadly available, nonindustry-specific export subsidies.
Finally, the import statistics average
unit values do not include imports that
were labeled as originating from an
‘‘unspecified’’ country, because the
Department could not be certain that
they were not from either an NME
country or a country with generally
available export subsidies.23 For valuing
other FOPs, Petitioners used sources
selected by the Department in recent
proceedings involving the PRC or
publicly available sources from
Thailand.24 In addition, Petitioners
made Thai Baht/U.S. dollar (‘‘USD’’)
currency conversions using the POIaverage Thai baht/USD exchange rate, as
reported on the Department’s Web
site.25
Petitioners valued labor costs using
Thai wage rates for manufacturing
industries, as reported by the
International Labor Organization
(‘‘ILO’’) in Table 6A of its Yearbook of
Labor Statistics.26 Petitioners inflated
the wage rate to be contemporaneous
with the POI using the International
Financial Statistics’ consumer price
index inflators, consistent with the
Department’s practice.27
Petitioners used the 2010 Annual
Report of the Electricity Generating
Authority of Thailand to calculate the
value for electricity usage.28
Additionally, Petitioners based factory
overhead, selling, general and
administrative expenses (‘‘SG&A’’), and
profit on data from the financial
statement Phang-Nga Timber Industries
(‘‘Phang-Nga’’), for the year ending
23 See, e.g., Polyethylene Terephthalate Film,
Sheet, and Strip from the People’s Republic of
China: Preliminary Determination of Sales at Less
Than Fair Value, 73 FR 24552, 24559 (May 5, 2008),
unchanged in Polyethylene Terephthalate Film,
Sheet, and Strip from the People’s Republic of
China: Final Determination of Sales at Less Than
Fair Value, 73 FR 55039 (September 24, 2008); see
also Volume II of the Petition, at Exhibit II–17.
24 See AD Initiation Checklist at 8; see also
Volume II of the Petition at 4.
25 See Volume II of the Petition, at 8 and Exhibit
II–20.
26 See Volume II of the Petition, at 7–8 and
Exhibit II–19.
27 See Volume II of the Petition, at 7 and Exhibit
II–19.
28 See Volume II of the Petition, at 8 and Exhibit
II–21.
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December 31, 2011.29 Phang-Nga is a
Thai producer of plywood.30
Fair Value Comparisons
Based on the data provided by
Petitioners, there is reason to believe
that imports of hardwood and
decorative plywood from the PRC are
being, or are likely to be, sold in the
United States at less than fair value.
Based on a comparison of EPs and NV
calculated in accordance with section
773(c) of the Act, the estimated
dumping margins for hardwood and
decorative plywood from the PRC range
from 298.36 percent to 321.68 percent.31
Initiation of Antidumping Investigation
Based upon the examination of the
Petition on hardwood and decorative
plywood from the PRC, the Department
finds that the Petition meets the
requirements of section 732 of the Act.
Therefore, we are initiating an
antidumping investigation to determine
whether imports of hardwood and
decorative plywood from the PRC are
being, or are likely to be, sold in the
United States at less than fair value. In
accordance with section 733(b)(1)(A) of
the Act and 19 CFR 351.205(b)(1),
unless postponed, we will make our
preliminary determinations no later
than 140 days after the date of this
initiation.
Application of an Alternative
Comparison Methodology
Pursuant to 19 CFR 351.414(c)(1)
(2012), in calculating the weightedaverage dumping margins in this
investigation, the Department will
compare weighted-average export prices
(EPs) (or constructed export prices
(CEPs)) with weighted-average normal
values (the average-to-average method)
unless it is determined that another
method is appropriate in a particular
case. If any interested party wishes to
request the Department consider
whether it is appropriate in this
investigation to apply an alternative
comparison methodology pursuant to 19
CFR 351.414(c)(1) (2012), such requests
are due no later than 45 days before the
scheduled date of the preliminary
determination.
Respondent Selection and Quantity and
Value Questionnaire
After considering the large number of
producers and exporters of hardwood
and decorative plywood from the PRC
identified by Petitioners, and
29 See Volume II of the Petition, at 8 and Exhibits
II–7, II–22 and II–23.
30 See Volume II of the Petition, at 8 and Exhibit
II–24.
31 See AD Initiation Checklist at 10.
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65175
considering the resources that must be
utilized by the Department to mail
quantity and value questionnaires to all
481 identified producers and
exporters—including entering each
address in a shipping handler’s Web
site, researching companies’ addresses
to ensure correctness, organizing
mailings, and following up on
potentially undeliverable mailings—the
Department has thus determined that
we do not have sufficient administrative
resources to mail quantity and value
questionnaires to all 481 identified
producers and exporters.32 Therefore,
the Department has determined to limit
the number of quantity and value
questionnaires it will send out to
exporters and producers based on U.S.
Customs and Border Protection (‘‘CBP’’)
data for U.S. imports under the
Harmonized Tariff Schedule of the
United States (‘‘HTSUS’’) numbers
which cover imports of hardwood and
decorative plywood and which are
listed in the scope of the investigation.33
Therefore, the Department will send
quantity and value questionnaires based
on the largest producers and exporters
of hardwood and decorative plywood
from the PRC by value in the CBP data
run.34
The quantity and value data received
from Chinese exporters/producers will
be used as the basis for selecting the
mandatory respondents. The
Department requires that the
respondents submit a response to both
the quantity and value questionnaire
and the separate-rate application by the
respective deadlines, as discussed
below and in the ‘‘Separate Rates’’
section, in order to receive
consideration for separate-rate status.35
In addition, the Department will post
the quantity and value questionnaire
along with the filing instructions on the
Import Administration Web site
(http://ia.ita.doc.gov/ia-highlights-andnews.html). Exporters and producers of
hardwood and decorative plywood that
do not receive quantity and value
questionnaires via mail may still submit
a quantity and value response and can
obtain a copy from the Import
Administration Web site. The quantity
32 See
Volume I of the Petition, at Exhibit I–7.
the ‘‘Scope of the Investigation,’’ in
Appendix I of this notice.
34 We used the value of CBP data because CBP
volume data reflect inconsistent units of measure
that cannot be converted into a common unit of
measure.
35 See, e.g., Circular Welded Austenitic Stainless
Pressure Pipe from the People’s Republic of China:
Initiation of Antidumping Duty Investigation, 73 FR
10221, 10225 (February 26, 2008); see also
Initiation of Antidumping Duty Investigation:
Certain Artist Canvas From the People’s Republic
of China, 70 FR 21996, 21999 (April 28, 2005).
33 See
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65176
Federal Register / Vol. 77, No. 207 / Thursday, October 25, 2012 / Notices
and value questionnaire must be
submitted by all Chinese exporters/
producers no later than November 7,
2012, 21 days from the signature date of
this Federal Register notice. All
quantity and value questionnaires must
be filed electronically using IA ACCESS.
An electronically filed document must
be received successfully in its entirety
by the Department’s electronic records
system, IA ACCESS. Documents
excepted from the electronic submission
requirements must be filed manually
(i.e., in paper form) with the APO/
Dockets Unit in Room 1870 and
stamped with the date and time of
receipt by the deadline noted above.
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305.
Instructions for filing such applications
may be found on the Department’s Web
site at http://ia.ita.doc.gov/apo.
Separate Rates
erowe on DSK2VPTVN1PROD with
In order to obtain separate-rate status
in an NME investigation, exporters and
producers must submit a separate-rate
status application.36 The specific
requirements for submitting the
separate-rate application in this
investigation are outlined in detail in
the application itself, which will be
available on the Department’s Web site
at http://trade.gov/ia/ia-highlights-andnews.html on the date of publication of
this initiation notice in the Federal
Register. The separate-rate application
will be due 60 days after publication of
this initiation notice. For exporters and
producers who submit a separate-rate
status application and subsequently are
selected as mandatory respondents,
these exporters and producers will no
longer be eligible for consideration for
separate rate status unless they respond
to all parts of the questionnaire as
mandatory respondents. As noted in the
‘‘Respondent Selection’’ section above,
the Department requires that the PRC
respondents submit a response to both
the quantity and value questionnaire
and the separate-rate application by the
respective deadlines in order to receive
consideration for separate-rate status.
The quantity and value questionnaire
will be available on the Department’s
Web site at http://trade.gov/iahighlights-and-news.html on the date of
the publication of this initiation notice
in the Federal Register.
36 See Policy Bulletin 05.1: Separate-Rates
Practice and Application of Combination Rates in
Antidumping Investigation involving Non-Market
Economy Countries (April 5, 2005) (‘‘Separate Rates
and Combination Rates Bulletin’’), available on the
Department’s Web site at http://trade.gov/ia/policy/
bull05–1.pdf.
VerDate Mar<15>2010
12:06 Oct 24, 2012
Jkt 229001
Use of Combination Rates
The Department will calculate
combination rates for certain
respondents that are eligible for a
separate rate in this investigation. The
Separate Rates and Combination Rates
Bulletin states:
{w}hile continuing the practice of assigning
separate rates only to exporters, all separate
rates that the Department will now assign in
its NME Investigation will be specific to
those producers that supplied the exporter
during the period of investigation. Note,
however, that one rate is calculated for the
exporter and all of the producers which
supplied subject merchandise to it during the
period of investigation. This practice applies
both to mandatory respondents receiving an
individually calculated separate rate as well
as the pool of non-investigated firms
receiving the weighted-average of the
individually calculated rates. This practice is
referred to as the application of ‘‘combination
rates’’ because such rates apply to specific
combinations of exporters and one or more
producers. The cash-deposit rate assigned to
an exporter will apply only to merchandise
both exported by the firm in question and
produced by a firm that supplied the exporter
during the period of investigation.37
Distribution of Copies of the Petition
In accordance with section
732(b)(3)(A) of the Act and 19 CFR
351.202(f), a copy of the public version
of the Petition has been provided to the
representatives of the Chinese
Government. Because of the particularly
large number of producers/exporters
identified in the Petition, the
Department considers the service of the
public version of the Petition to the
foreign producers/exporters satisfied by
the delivery of the public version of the
Petition to the PRC Government,
consistent with 19 CFR 351.203(c)(2).
ITC Notification
We have notified the ITC of our
initiation, as required by section 732(d)
of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine,
no later than November 13, 2012,
whether there is a reasonable indication
that imports of hardwood and
decorative plywood from the PRC are
materially injuring, or threatening
material injury to a U.S. industry. A
negative ITC determination will result
in the investigation being terminated;
otherwise, this investigation will
proceed according to statutory and
regulatory time limits.
37 See Separate Rates and Combination Rates
Bulletin, at 6 (emphasis added).
PO 00000
Frm 00011
Fmt 4703
Sfmt 4703
Notification to Interested Parties
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305(b).
On January 22, 2008, the Department
published Antidumping and
Countervailing Duty Proceedings:
Documents Submission Procedures;
APO Procedures, 73 FR 3634 (January
22, 2008). Parties wishing to participate
in this investigation should ensure that
they meet the requirements of these
procedures (e.g., the filing of letters of
appearance as discussed at 19 CFR
351.103(d)).
Any party submitting factual
information in an AD/CVD proceeding
must certify to the accuracy and
completeness of that information.38
Parties are hereby reminded that revised
certification requirements are in effect
for company/government officials as
well as their representatives in all
segments of any AD/CVD proceeding
initiated on or after March 14, 2011.39
The formats for the revised certifications
are provided at the end of the Interim
Final Rule and the Supplemental
Interim Final Rule. The Department
intends to reject factual submissions in
any proceeding segments initiated on or
after March 14, 2011, if the submitting
party does not comply with the revised
certification requirements.
This notice is issued and published
pursuant to section 777(i) of the Act.
Dated: October 17, 2012.
Paul Piquado,
Assistant Secretary for Import
Administration.
[FR Doc. 2012–26221 Filed 10–24–12; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
Science Advisory Board (SAB)
Office of Oceanic and
Atmospheric Research (OAR), National
Oceanic and Atmospheric
Administration (NOAA), Department of
Commerce (DOC).
ACTION: Notice of open meeting.
AGENCY:
38 See
Section 782(b) of the Act.
Certification of Factual Information to
Import Administration During Antidumping and
Countervailing Duty Proceedings: Interim Final
Rule, 76 FR 7491 (February 10, 2011) (‘‘Interim
Final Rule’’) (amending 19 CFR 351.303(g)(1) & (2)),
as supplemented by Certification of Factual
Information to Import Administration During
Antidumping and Countervailing Duty Proceedings:
Supplemental Interim Final Rule, 76 FR 54697
(September 2, 2011) (‘‘Supplemental Interim Final
Rule’’).
39 See
E:\FR\FM\25OCN1.SGM
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]]>Agencies
[Federal Register Volume 77, Number 207 (Thursday, October 25, 2012)]
[Notices]
[Pages 65172-65176]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-26221]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-986]
Hardwood and Decorative Plywood From the People's Republic of
China: Initiation of Antidumping Duty Investigation
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
DATES: Effective Date: October 25, 2012.
FOR FURTHER INFORMATION CONTACT: Catherine Bertrand or Katie Marksberry
at (202) 482-3207 or (202) 482-7906, respectively, AD/CVD Operations,
Office 9, Import Administration, International Trade Administration,
U.S. Department of Commerce, 14th Street and Constitution Avenue NW.,
Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petition
On September 27, 2012, the Department of Commerce (``Department'')
received an antidumping duty (``AD'') petition (``Petition'')
concerning imports of hardwood and decorative plywood from the People's
Republic of China (``PRC'') filed in proper form on behalf of Coalition
for Fair Trade of Hardwood Plywood (``Petitioners'').\1\ On October 2,
2012, the Department issued a request for additional information and
clarification of certain areas of the Petition. On October 5 and
October 9, 2012, Petitioners filed a response with respect to general
questions about information in the Petition as well as questions
specific to the AD Petition (``Supplement to the Petition''). On
October 15, 2012, Petitioners also filed a revision to the proposed
scope language and additional supporting documentation.
---------------------------------------------------------------------------
\1\ See ``Petitions for the Imposition of Antidumping Duties And
Countervailing Duties: Hardwood Plywood From The People's Republic
of China,'' filed on September 27, 2012 (``Petition'').
---------------------------------------------------------------------------
In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the ``Act''), Petitioners allege that imports of hardwood and
decorative plywood from the PRC are being, or are likely to be, sold in
the United States at less than fair value, within the meaning of
section 731 of the Act, and that such imports are materially injuring,
or threatening material injury to, an industry in the United States.
Also, consistent with section 732(b)(1) of the Act, the Petition is
accompanied by information reasonably available to Petitioners
supporting their allegations.
The Department finds that the Petition was filed on behalf of the
domestic industry because Petitioners are an interested party as
defined in sections 771(9)(C), (E), and (F) of the Act. The Department
also finds that Petitioners have demonstrated sufficient industry
support with respect to the antidumping duty investigation that
Petitioners are requesting that the Department initiate (see
``Determination of Industry Support for the Petition'' section below).
Period of Investigation
The period of investigation (``POI'') is January 1, 2012, through
June 30, 2012.\2\
---------------------------------------------------------------------------
\2\ See 19 CFR 351.204(b)(1).
---------------------------------------------------------------------------
Scope of the Investigation
The product covered by this investigation is hardwood and
decorative plywood from the PRC. For a full description of the scope of
the Investigation, please see the ``Scope of the Investigation,'' in
Appendix I of this notice.
Comments on Scope of the Investigation
During our review of the Petition, we discussed the scope with
Petitioners to ensure that it is an accurate reflection of the products
for which the domestic industry is seeking relief. Moreover, as
discussed in the preamble to the Department's regulations \3\, we are
setting aside a period for interested parties to raise issues regarding
product coverage. The period of scope
[[Page 65173]]
consultations is intended to provide the Department with ample
opportunity to consider all comments and to consult with parties prior
to the issuance of the preliminary determinations. The Department
encourages all interested parties to submit such comments by November
6, 2012, twenty calendar days from the signature date of this notice.
All comments must be filed on the records of both the PRC antidumping
and countervailing duty investigations. Comments should be filed
electronically using Import Administration's Antidumping and
Countervailing Duty Centralized Electronic Service System (``IA
ACCESS''). An electronically filed document must be received
successfully in its entirety by the Department's electronic records
system, IA ACCESS. Documents excepted from the electronic submission
requirements must be filed manually (i.e., in paper form) with the APO/
Dockets Unit in Room 1870 and stamped with the date and time of receipt
by the deadline noted above.
---------------------------------------------------------------------------
\3\ See Antidumping Duties; Countervailing Duties; Final Rule,
62 FR 27296, 27323 (May 19, 1997).
---------------------------------------------------------------------------
Comments on Product Characteristics for Antidumping Questionnaires
We are requesting comments from interested parties regarding the
appropriate physical characteristics of hardwood and decorative plywood
to be reported in response to the Department's antidumping
questionnaires. This information will be used to identify the key
physical characteristics of the merchandise under consideration in
order to more accurately report the relevant factors and costs of
production, as well as to develop appropriate product comparison
criteria.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate listing of
physical characteristics. Specifically, they may provide comments as to
which characteristics are appropriate to use as (1) general product
characteristics and (2) the product comparison criteria. We note that
it is not always appropriate to use all product characteristics as
product comparison criteria. We base product comparison criteria on
meaningful commercial differences among products. In other words, while
there may be some physical product characteristics utilized by
manufacturers to describe hardwood and decorative plywood, it may be
that only a select few product characteristics take into account
commercially meaningful physical characteristics. In addition,
interested parties may comment on the order in which the physical
characteristics should be used in product matching. Generally, the
Department attempts to list the most important physical characteristics
first and the least important characteristics last.
In order to consider the suggestions of interested parties in
developing and issuing the antidumping questionnaires, we must receive
comments on product characteristics by November 16, 2012. Additionally,
rebuttal comments must be received by November 23, 2012. All comments
and submissions to the Department must be filed electronically using IA
ACCESS, as referenced above.
Determination of Industry Support for the Petition
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, the Department
shall: (i) Poll the industry or rely on other information in order to
determine if there is support for the petition, as required by
subparagraph (A); or (ii) determine industry support using a
statistically valid sampling method to poll the industry.
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs the Department to look to producers and workers who produce the
domestic like product. The U.S. International Trade Commission
(``ITC''), which is responsible for determining whether ``the domestic
industry'' has been injured, must also determine what constitutes a
domestic like product in order to define the industry. While both the
Department and the ITC must apply the same statutory definition
regarding the domestic like product,\4\ they do so for different
purposes and pursuant to a separate and distinct authority. In
addition, the Department's determination is subject to limitations of
time and information. Although this may result in different definitions
of the like product, such differences do not render the decision of
either agency contrary to law.\5\
---------------------------------------------------------------------------
\4\ See section 771(10) of the Act.
\5\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001), (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, Petitioners do not offer
a definition of domestic like product distinct from the scope of the
investigations. Based on our analysis of the information submitted on
the record, we have determined that hardwood and decorative plywood
constitutes a single domestic like product and we have analyzed
industry support in terms of that domestic like product.\6\
---------------------------------------------------------------------------
\6\ See Antidumping Duty Investigation Initiation Checklist:
Hardwood and Decorative Plywood from the People's Republic of China
(``AD Initiation Checklist''), at Attachment II, Analysis of
Industry Support for the Petitions Covering Hardwood and Decorative
Plywood from the People's Republic of China, on file in the Central
Records Unit (CRU), Room 7046 of the main Department of Commerce
building.
---------------------------------------------------------------------------
In determining whether Petitioners have standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of Investigations'' section above. To
establish industry support, Petitioners provided their production of
the domestic like product in 2011, and compared this to the estimated
total production of the domestic like product for the entire domestic
industry.\7\ Petitioners estimated 2011 production of the domestic like
product by non-petitioning companies based on their knowledge of the
industry. We have relied upon data Petitioners provided for purposes of
measuring industry support.\8\
---------------------------------------------------------------------------
\7\ See Volume I of the Petitions, at 3-5, and Exhibits I-3A, I-
3B, and I-3C; see also Supplement to the Petition, at 3 and Exhibit
I-9; see also Second Supplement to the AD/CVD Petitions, dated
October 9, 2012, at 2-8.
\8\ See AD Initiation Checklist at Attachment II.
---------------------------------------------------------------------------
On October 9, 2012, we received a submission on behalf of an
importer of hardwood and decorative plywood, an interested party to
this proceeding as
[[Page 65174]]
defined in section 771(9)(A) of the Act, questioning the industry
support calculation. On October 11, 2012, we received a second
submission on behalf of that importer of hardwood and decorative
plywood, supplementing the importer's October 9, 2012, challenge to
Petitioners' industry support calculation. On October 15, 2012,
Petitioners filed their response to the importer's industry support
challenge.\9\ On October 16, 2012, we received a third submission on
behalf of the importer of hardwood and decorative plywood. On October
17, 2012, Petitioners submitted an additional response to the
importer's industry support challenge.
---------------------------------------------------------------------------
\9\ For further discussion of these submissions, see AD
Initiation Checklist at Attachment II.
---------------------------------------------------------------------------
Based on information provided in the Petition, supplemental
submissions, and other information readily available to the Department,
we determine that Petitioners have met the statutory criteria for
industry support under section 732(c)(4)(A)(i) of the Act because the
domestic producers (or workers) who support the Petition account for at
least 25 percent of the total production of the domestic like
product.\10\ Based on information provided in the Petition and other
submissions, the domestic producers (or workers) have met the statutory
criteria for industry support under section 732(c)(4)(A)(ii) of the Act
because the domestic producers (or workers) who support the Petition
account for more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the Petition. Accordingly, the Department
determines that the Petition was filed on behalf of the domestic
industry within the meaning of section 732(b)(1) of the Act.\11\
---------------------------------------------------------------------------
\10\ See AD Initiation Checklist at Attachment II.
\11\ See AD Initiation Checklist at Attachment II.
---------------------------------------------------------------------------
The Department finds that Petitioners filed the Petition on behalf
of the domestic industry because they are interested parties as defined
in sections 771(9)(C), (E), and (F) of the Act and they have
demonstrated sufficient industry support with respect to the
antidumping duty investigation that they are requesting the Department
initiate.\12\
---------------------------------------------------------------------------
\12\ Id.
---------------------------------------------------------------------------
Allegations and Evidence of Material Injury and Causation
Petitioners allege that the U.S. industry producing the domestic
like product is being materially injured, or is threatened with
material injury, by reason of the imports of the merchandise under
consideration sold at less than normal value (``NV''). In addition,
Petitioners allege that subject imports exceed the negligibility
threshold provided for under section 771(24)(A) of the Act.
Petitioners contend that the industry's injured condition is
illustrated by reduced market share; underselling and price depression
or suppression; lost sales and revenue; reduced capacity and capacity
utilization; increased inventories; decline in financial performance;
and employment data.\13\ We have assessed the allegations and
supporting evidence regarding material injury, threat of material
injury, and causation, and we have determined that these allegations
are properly supported by adequate evidence and meet the statutory
requirements for initiation.\14\
---------------------------------------------------------------------------
\13\ See Volume I of the Petition, at 14-57 and Exhibits I-9
through I-27, and Supplement to the Petition, at 1, 3-4, and
Exhibits Supp I-2 through Supp I-4.
\14\ See AD Initiation Checklist, at Attachment III.
---------------------------------------------------------------------------
Allegations of Sales at Less Than Fair Value
The following is a description of the allegations of sales at less
than fair value upon which the Department based its decision to
initiate this investigation of imports of hardwood and decorative
plywood from the PRC. The sources of data for the deductions and
adjustments relating to the U.S. price and the factors of production
(``FOPs'') are also discussed in the initiation checklist.\15\
---------------------------------------------------------------------------
\15\ See AD Initiation Checklist at 6-7.
---------------------------------------------------------------------------
Export Price
Petitioners calculated export price (``EP'') based on two invoices
for hardwood and decorative plywood sold by Chinese exporters, as
identified in affidavits regarding U.S. price.\16\ Based on the
invoices and delivery terms, Petitioners deducted from these prices the
charges and expenses associated with exporting and delivering the
product to the U.S. customer (e.g. brokerage and handling and foreign
inland freight).\17\ Petitioners made no other adjustments.\18\
---------------------------------------------------------------------------
\16\ See AD Initiation Checklist at 6; see also Volume II of the
Petition, at 1-2 and Exhibits II-1 through 3.
\17\ See AD Initiation Checklist at 6-7; see also Volume II of
the Petition, at 2 and Exhibits II-4 through II-11; see also
Supplement to the Petition, at 8.
\18\ See Volume II of the Petition, at 2 and Exhibit II-11.
---------------------------------------------------------------------------
Normal Value
Petitioners state that the Department has long treated the PRC as a
non-market economy (``NME'') country and this designation remains in
effect today.\19\ In accordance with section 771(18)(C)(i) of the Act,
the presumption of NME status remains in effect until revoked by the
Department. The presumption of NME status for the PRC has not been
revoked by the Department and, therefore, remains in effect for
purposes of the initiation of the PRC investigation. Accordingly, the
NV of the product for the PRC investigation is appropriately based on
FOPs valued in a surrogate market-economy (``ME'') country in
accordance with section 773(c) of the Act. In the course of the
investigation, all parties will have the opportunity to provide
relevant information related to the issue of the PRC's NME status and
the granting of separate rates to individual exporters.
---------------------------------------------------------------------------
\19\ See Volume II of the Petitions, at 3-6 and Exhibits II-12-
14.
---------------------------------------------------------------------------
Petitioners claim that Thailand is an appropriate surrogate country
under 19 CFR 351.408(a) because it is an ME country that is at a
comparable level of economic development to the PRC and surrogate
values data from Thailand are available and reliable. Petitioners also
believe that Thailand is a significant producer of comparable
merchandise.\20\ Based on the information provided by Petitioners, we
believe that it is appropriate to use Thailand as a surrogate country
for initiation purposes. In the course of the investigation, interested
parties will have the opportunity to submit comments regarding
surrogate country selection and, pursuant to 19 CFR 351.301(c)(3)(i),
will be provided an opportunity to submit publicly available
information to value FOPs within 40 days after the date of publication
of the preliminary determination.
---------------------------------------------------------------------------
\20\ See Volume II of the Petition, at 3-6.
---------------------------------------------------------------------------
Petitioners calculated the NV and dumping margins for the U.S.
price, as discussed above, using the Department's NME methodology as
required by section 773(c) of the Act, 19 CFR 351.202(b)(7)(i)(C) and
19 CFR 351.408. Petitioners calculated NV based on the consumption
rates of a producer of hardwood and decorative plywood which
Petitioners assert is comparable to major hardwood and decorative
plywood producers in the PRC.\21\
---------------------------------------------------------------------------
\21\ See Volume II of the Petition, at 6 and Exhibits II-15 and
II-16.
---------------------------------------------------------------------------
Petitioners valued by-products and most FOPs, including packing
FOPs, based on reasonably available, public surrogate country data,
specifically, Thai import statistics from the Global Trade Atlas
(``GTA'').\22\ Petitioners
[[Page 65175]]
excluded from these import statistics values from countries previously
determined by the Department to be NME countries, and from India,
Indonesia, and the Republic of Korea, as the Department has previously
excluded prices from these countries because they maintain broadly
available, non-industry-specific export subsidies. Finally, the import
statistics average unit values do not include imports that were labeled
as originating from an ``unspecified'' country, because the Department
could not be certain that they were not from either an NME country or a
country with generally available export subsidies.\23\ For valuing
other FOPs, Petitioners used sources selected by the Department in
recent proceedings involving the PRC or publicly available sources from
Thailand.\24\ In addition, Petitioners made Thai Baht/U.S. dollar
(``USD'') currency conversions using the POI-average Thai baht/USD
exchange rate, as reported on the Department's Web site.\25\
---------------------------------------------------------------------------
\22\ See Volume II of the Petition, at 7 and Exhibit II-17; see
also Supplement to Petition at 5-8.
\23\ See, e.g., Polyethylene Terephthalate Film, Sheet, and
Strip from the People's Republic of China: Preliminary Determination
of Sales at Less Than Fair Value, 73 FR 24552, 24559 (May 5, 2008),
unchanged in Polyethylene Terephthalate Film, Sheet, and Strip from
the People's Republic of China: Final Determination of Sales at Less
Than Fair Value, 73 FR 55039 (September 24, 2008); see also Volume
II of the Petition, at Exhibit II-17.
\24\ See AD Initiation Checklist at 8; see also Volume II of the
Petition at 4.
\25\ See Volume II of the Petition, at 8 and Exhibit II-20.
---------------------------------------------------------------------------
Petitioners valued labor costs using Thai wage rates for
manufacturing industries, as reported by the International Labor
Organization (``ILO'') in Table 6A of its Yearbook of Labor
Statistics.\26\ Petitioners inflated the wage rate to be
contemporaneous with the POI using the International Financial
Statistics' consumer price index inflators, consistent with the
Department's practice.\27\
---------------------------------------------------------------------------
\26\ See Volume II of the Petition, at 7-8 and Exhibit II-19.
\27\ See Volume II of the Petition, at 7 and Exhibit II-19.
---------------------------------------------------------------------------
Petitioners used the 2010 Annual Report of the Electricity
Generating Authority of Thailand to calculate the value for electricity
usage.\28\ Additionally, Petitioners based factory overhead, selling,
general and administrative expenses (``SG&A''), and profit on data from
the financial statement Phang-Nga Timber Industries (``Phang-Nga''),
for the year ending December 31, 2011.\29\ Phang-Nga is a Thai producer
of plywood.\30\
---------------------------------------------------------------------------
\28\ See Volume II of the Petition, at 8 and Exhibit II-21.
\29\ See Volume II of the Petition, at 8 and Exhibits II-7, II-
22 and II-23.
\30\ See Volume II of the Petition, at 8 and Exhibit II-24.
---------------------------------------------------------------------------
Fair Value Comparisons
Based on the data provided by Petitioners, there is reason to
believe that imports of hardwood and decorative plywood from the PRC
are being, or are likely to be, sold in the United States at less than
fair value. Based on a comparison of EPs and NV calculated in
accordance with section 773(c) of the Act, the estimated dumping
margins for hardwood and decorative plywood from the PRC range from
298.36 percent to 321.68 percent.\31\
---------------------------------------------------------------------------
\31\ See AD Initiation Checklist at 10.
---------------------------------------------------------------------------
Initiation of Antidumping Investigation
Based upon the examination of the Petition on hardwood and
decorative plywood from the PRC, the Department finds that the Petition
meets the requirements of section 732 of the Act. Therefore, we are
initiating an antidumping investigation to determine whether imports of
hardwood and decorative plywood from the PRC are being, or are likely
to be, sold in the United States at less than fair value. In accordance
with section 733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless
postponed, we will make our preliminary determinations no later than
140 days after the date of this initiation.
Application of an Alternative Comparison Methodology
Pursuant to 19 CFR 351.414(c)(1) (2012), in calculating the
weighted-average dumping margins in this investigation, the Department
will compare weighted-average export prices (EPs) (or constructed
export prices (CEPs)) with weighted-average normal values (the average-
to-average method) unless it is determined that another method is
appropriate in a particular case. If any interested party wishes to
request the Department consider whether it is appropriate in this
investigation to apply an alternative comparison methodology pursuant
to 19 CFR 351.414(c)(1) (2012), such requests are due no later than 45
days before the scheduled date of the preliminary determination.
Respondent Selection and Quantity and Value Questionnaire
After considering the large number of producers and exporters of
hardwood and decorative plywood from the PRC identified by Petitioners,
and considering the resources that must be utilized by the Department
to mail quantity and value questionnaires to all 481 identified
producers and exporters--including entering each address in a shipping
handler's Web site, researching companies' addresses to ensure
correctness, organizing mailings, and following up on potentially
undeliverable mailings--the Department has thus determined that we do
not have sufficient administrative resources to mail quantity and value
questionnaires to all 481 identified producers and exporters.\32\
Therefore, the Department has determined to limit the number of
quantity and value questionnaires it will send out to exporters and
producers based on U.S. Customs and Border Protection (``CBP'') data
for U.S. imports under the Harmonized Tariff Schedule of the United
States (``HTSUS'') numbers which cover imports of hardwood and
decorative plywood and which are listed in the scope of the
investigation.\33\ Therefore, the Department will send quantity and
value questionnaires based on the largest producers and exporters of
hardwood and decorative plywood from the PRC by value in the CBP data
run.\34\
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\32\ See Volume I of the Petition, at Exhibit I-7.
\33\ See the ``Scope of the Investigation,'' in Appendix I of
this notice.
\34\ We used the value of CBP data because CBP volume data
reflect inconsistent units of measure that cannot be converted into
a common unit of measure.
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The quantity and value data received from Chinese exporters/
producers will be used as the basis for selecting the mandatory
respondents. The Department requires that the respondents submit a
response to both the quantity and value questionnaire and the separate-
rate application by the respective deadlines, as discussed below and in
the ``Separate Rates'' section, in order to receive consideration for
separate-rate status.\35\
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\35\ See, e.g., Circular Welded Austenitic Stainless Pressure
Pipe from the People's Republic of China: Initiation of Antidumping
Duty Investigation, 73 FR 10221, 10225 (February 26, 2008); see also
Initiation of Antidumping Duty Investigation: Certain Artist Canvas
From the People's Republic of China, 70 FR 21996, 21999 (April 28,
2005).
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In addition, the Department will post the quantity and value
questionnaire along with the filing instructions on the Import
Administration Web site (http://ia.ita.doc.gov/ia-highlights-and-news.html). Exporters and producers of hardwood and decorative plywood
that do not receive quantity and value questionnaires via mail may
still submit a quantity and value response and can obtain a copy from
the Import Administration Web site. The quantity
[[Page 65176]]
and value questionnaire must be submitted by all Chinese exporters/
producers no later than November 7, 2012, 21 days from the signature
date of this Federal Register notice. All quantity and value
questionnaires must be filed electronically using IA ACCESS. An
electronically filed document must be received successfully in its
entirety by the Department's electronic records system, IA ACCESS.
Documents excepted from the electronic submission requirements must be
filed manually (i.e., in paper form) with the APO/Dockets Unit in Room
1870 and stamped with the date and time of receipt by the deadline
noted above.
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. Instructions for filing such
applications may be found on the Department's Web site at http://ia.ita.doc.gov/apo.
Separate Rates
In order to obtain separate-rate status in an NME investigation,
exporters and producers must submit a separate-rate status
application.\36\ The specific requirements for submitting the separate-
rate application in this investigation are outlined in detail in the
application itself, which will be available on the Department's Web
site at http://trade.gov/ia/ia-highlights-and-news.html on the date of
publication of this initiation notice in the Federal Register. The
separate-rate application will be due 60 days after publication of this
initiation notice. For exporters and producers who submit a separate-
rate status application and subsequently are selected as mandatory
respondents, these exporters and producers will no longer be eligible
for consideration for separate rate status unless they respond to all
parts of the questionnaire as mandatory respondents. As noted in the
``Respondent Selection'' section above, the Department requires that
the PRC respondents submit a response to both the quantity and value
questionnaire and the separate-rate application by the respective
deadlines in order to receive consideration for separate-rate status.
The quantity and value questionnaire will be available on the
Department's Web site at http://trade.gov/ia-highlights-and-news.html
on the date of the publication of this initiation notice in the Federal
Register.
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\36\ See Policy Bulletin 05.1: Separate-Rates Practice and
Application of Combination Rates in Antidumping Investigation
involving Non-Market Economy Countries (April 5, 2005) (``Separate
Rates and Combination Rates Bulletin''), available on the
Department's Web site at http://trade.gov/ia/policy/bull05-1.pdf.
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Use of Combination Rates
The Department will calculate combination rates for certain
respondents that are eligible for a separate rate in this
investigation. The Separate Rates and Combination Rates Bulletin
states:
{w{time} hile continuing the practice of assigning separate rates
only to exporters, all separate rates that the Department will now
assign in its NME Investigation will be specific to those producers
that supplied the exporter during the period of investigation. Note,
however, that one rate is calculated for the exporter and all of the
producers which supplied subject merchandise to it during the period
of investigation. This practice applies both to mandatory
respondents receiving an individually calculated separate rate as
well as the pool of non-investigated firms receiving the weighted-
average of the individually calculated rates. This practice is
referred to as the application of ``combination rates'' because such
rates apply to specific combinations of exporters and one or more
producers. The cash-deposit rate assigned to an exporter will apply
only to merchandise both exported by the firm in question and
produced by a firm that supplied the exporter during the period of
investigation.\37\
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\37\ See Separate Rates and Combination Rates Bulletin, at 6
(emphasis added).
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Distribution of Copies of the Petition
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), a copy of the public version of the Petition has been
provided to the representatives of the Chinese Government. Because of
the particularly large number of producers/exporters identified in the
Petition, the Department considers the service of the public version of
the Petition to the foreign producers/exporters satisfied by the
delivery of the public version of the Petition to the PRC Government,
consistent with 19 CFR 351.203(c)(2).
ITC Notification
We have notified the ITC of our initiation, as required by section
732(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, no later than November 13,
2012, whether there is a reasonable indication that imports of hardwood
and decorative plywood from the PRC are materially injuring, or
threatening material injury to a U.S. industry. A negative ITC
determination will result in the investigation being terminated;
otherwise, this investigation will proceed according to statutory and
regulatory time limits.
Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). On January 22, 2008, the
Department published Antidumping and Countervailing Duty Proceedings:
Documents Submission Procedures; APO Procedures, 73 FR 3634 (January
22, 2008). Parties wishing to participate in this investigation should
ensure that they meet the requirements of these procedures (e.g., the
filing of letters of appearance as discussed at 19 CFR 351.103(d)).
Any party submitting factual information in an AD/CVD proceeding
must certify to the accuracy and completeness of that information.\38\
Parties are hereby reminded that revised certification requirements are
in effect for company/government officials as well as their
representatives in all segments of any AD/CVD proceeding initiated on
or after March 14, 2011.\39\ The formats for the revised certifications
are provided at the end of the Interim Final Rule and the Supplemental
Interim Final Rule. The Department intends to reject factual
submissions in any proceeding segments initiated on or after March 14,
2011, if the submitting party does not comply with the revised
certification requirements.
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\38\ See Section 782(b) of the Act.
\39\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings: Interim Final Rule, 76 FR 7491 (February 10, 2011)
(``Interim Final Rule'') (amending 19 CFR 351.303(g)(1) & (2)), as
supplemented by Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings: Supplemental Interim Final Rule, 76 FR 54697 (September
2, 2011) (``Supplemental Interim Final Rule'').
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This notice is issued and published pursuant to section 777(i) of
the Act.
Dated: October 17, 2012.
Paul Piquado,
Assistant Secretary for Import Administration.
[FR Doc. 2012-26221 Filed 10-24-12; 8:45 am]
BILLING CODE 3510-DS-P
